Dynamic Contract Design of Product‐Service Supply Chain considering Consumers’ Strategic Behavior and Service Quality

Abstract

With increasing market competition and rapid development of service economy, more and more enterprises are shifting from providing products or services to providing product-service systems (PSSs) that integrate products and services, in order to improve competitiveness and profitability. Meanwhile, consumers have strategic delayed purchasing behavior when purchasing the PSS and high requirements for service quality. This paper investigates the two-period pricing and service quality decisions of product-service supply chain (PSSC) considering consumers’ strategic behavior under decentralized and centralized scenarios. The equilibrium results are compared in two scenarios. In order to eliminate performance loss under the decentralized scenario, we design two-period dynamic contracts to coordinate the PSSC. Furthermore, numerical simulation is provided to verify the feasibility of the contracts. The following conclusions can be drawn: (1) the higher the service input-efficiency, the more beneficial for alleviating consumers’ strategic purchase behavior under two scenarios, but this mitigation effect is more obvious under the centralized scenario. (2) Compared with the centralized scenario, the service quality is lower, the two-period PSS sales prices are higher, and the two-period profit is lower under the decentralized scenario. The proportion of service valuation (accounts for the valuation of PSS) will promote the widening of the service quality gap under two scenarios, but in some cases, the service input-efficiency will weaken the promotion effect of the proportion of service valuation. (3) The design of the two-period combined contracts depends on the proportion of service valuation. When the proportion of service valuation is high, the “two-period revenue sharing + service-cost sharing” combined dynamic contract can achieve PSSC perfect coordination. However, when the proportion of service valuation is low, it is necessary to design complexity combined dynamic contract which can achieve PSSC perfect coordination.

Manufacturer invasion and online sales mode strategy considering the level of service quality

“…Zhang et al [ 28 ] explored how service quality affects the decision of e-platform to establish self-operated channels when considering the impact of channel demand under varying levels of service quality and customer sensitivity. Wang et al [ 29 ] investigated the effects of service providers improving service quality on the interests of various parties within a product service supply chain, emphasizing the significance of service quality to supply chain members and social welfare. Chen et al [ 30 ] discovered that enhancing retail service quality can boost market demand for products under conditions of product quality homogeneity.…”

The Influence of Price and Product Quality on Purchasing Decisions (Case Study of Eld Store Online Business)

“…If you look at product sales over the last 2-3 years, the data obtained by the author shows a decrease in the number of customers buying products outside the Eld Store, in 2020 there were 100 customers who decided to purchase at the Eld Store. Furthermore, in 2021 there was a decrease to 80 customers, there were complaints about product quality is lacking and purchasing decisions have decreased (Izadkhasti, 2023;Wang et al, 2021;Wu et al, 2023). And in 2022 the number of customers who decide to purchase at the Eld Store will increase to 60 customers, due to the return of positive value and good responses from customers, but not as many as in 2020.…”

Impact of Consumer Strategic Behavior on the Supplier Channel Selection in a Retailing Platform

“…Te emerging research issues of retailing platforms include pricing strategies, consumer behavior, channel integration, and strategies. Pricing strategies involve pricing policy such as online coupon [36,37], bundling pricing [38], contract design [39,40], and pricing policies in emerging new retailing, such as omni-channel Huang and Guo [41]; shipfrom-store [42]. Additionally, consumer behaviors are afected by purchase intentions [43], customer satisfaction [44,45], and perceived value [38,46].…”